Futu Information August 17$Tencent (00700.HK) $The quarterly results for the quarter ended June 30, 2022 are announced after the Hong Kong stock market:

• Total revenue was 134.034 billion yuan, down 3% from the same period last year.

• Adjusted net profit was 28.139 billion yuan, down 17% from the same period last year.

• The adjusted earnings per share is 2.949 yuan, and the diluted earnings per share is 2.896 yuan.
  

In addition, the combined number of monthly active user accounts of Q2 Wechat and WeChat was 1.299 billion, up 3.8% from the same period last year. The number of monthly active user accounts of QQ mobile terminals was 569 million, down 3.8% from the same period last year; and the number of registered accounts for paid value-added services was 235 million, up 2.3% from the same period last year.

In terms of specific revenue distribution:

Value-added service service

Q2 income was 71.7 billion yuan, which remained stable compared with the same period last year. As the international game industry began to digest the impact of the post-epidemic era, game revenues in the international market fell 1 per cent to 10.7 billion yuan, or roughly stable at a fixed exchange rate.

In terms of individual games, revenue from "PUBG Mobile" and "the Wild fight" declined, while the strong performance of "VALORANT" and the newly launched "the rise of the Night Night" contributed to incremental revenue.

The local market has experienced a similar period of adjustment, facing a series of transitional challenges, including a decline in the number of large game releases, a reduction in user consumption and the implementation of protection measures for minors, and game revenue in the local market fell 1 per cent to 31.8 billion yuan. In terms of individual games, revenue from "Arena of Valor", "Moonlight Blade Mobile Games" and "League of Legends" declined, while revenue from recently launched games such as "League of Legends Mobile Games", "return to Empire" and "Golden Shovel Battle" increased.

Social network revenue rose 1 per cent to 29.2 billion yuan, reflecting an increase in revenue from live video and digital content subscription services, while a decline in live music and game streaming.

Online advertising business

Q2 revenue fell 18 per cent year-on-year to 18.6 billion yuan, reflecting significantly weak demand in the Internet services, education and financial sectors. The advertising business was hit harder in April and May, partly offset by advertising revenue from the merger of Sogou.

Social and other advertising revenue fell 17 per cent to 16.1 billion yuan, as eCPM fell due to weak advertising demand and low advertising bidding.

Media advertising revenue fell 25 per cent to 2.5 billion yuan, due to a decline in advertising revenues for Tencent Video and Tencent News.

Financial technology and corporate service business

Q2 revenue rose 1 per cent year-on-year to 42.2 billion yuan. The year-on-year growth rate of financial technology services revenue slowed compared with the previous quarter because a new round of COVID-19 epidemic briefly curbed commercial payment activities in April and May. Corporate service revenue dropped slightly compared with the same period last year, reflecting Tencent's active commitment to reducing loss-making projects.

In addition, Tencent said that he intends to repurchase the company's shares in accordance with the listing rules after the release of this financial report.

Financial report forecast

According to Bloomberg's consensus forecast, Tencent's second-quarter revenue is expected to be 135.598 billion yuan, while adjusted net profit is 24.388 billion yuan.

Attached:Tencent's performance for the three months ended June 30, 2022

The company will hold an earnings call at 20:00 Beijing time tonight. Niu you are welcome to follow us at that time:

[performance meeting] Tencent 2022Q2 performance call (Chinese simultaneous interpretation)